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Iceland president's toughest decision

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Iceland is pinning its hopes on the Arctic region as the eurozone remains in financial crisis

The president says he would veto a parliamentary decision to seek EU membership

Iceland allowed its banks to fail during its crisis, and the economy has since recovered

Iceland is pinning its hopes on the Arctic as Europe continues to suffer from high unemployment and faltering growth.

Iceland's president Olafur Ragnar Grimsson told CNN's Richard Quest: "The Arctic region is gradually becoming one of the most important playing grounds in the 21st century world economy."

His comments come four years after the country let its debt-ridden banks fail, and as the country's growth looks set to far outpace the eurozone. Grimsson said the decision not to save the banks was "the most difficult I ever had to make," but maintained it was the right one.

"Allowing the banks to fail is one of the fundamental reasons Iceland is now in a strong recovery with respect to other European countries," he said.

Now, according to Grimsson, "Iceland is better placed to benefit by maintaining our present position, rather than to let the EU speak on our behalf."